EUR/USD Price Analysis: Bears move in and eye a break towards key 1.0300 support
- The bulls need to hold 1.0350 and get on the back side of the micro bearish trendline resistance.
- Bears eye a break below 1.0300 for the days ahead.
EUR/USD bears have moved in on the risk of the Chinese Communist Party losing power as protesters angered by strict anti-virus measures called for China’s powerful leader to resign. Markets have opened risk-off which is supporting the US Dollar, weighing on the euro as the following technical analysis illustrates:
EUR/USD Weekly chart
While below 1.0480, the bias is for a downside correction into the support structure. A 50% mean reversion comes in near 1.0050.
EUR/USD daily charts
With that being said, an inverse head & shoulders could be in the making at this juncture. Bullish commitments around 1.0300/50 would be forming the right-hand shoulder of the bullish pattern.
The bears will be back in control on a break of 1.0220.
EUR/USD H4 charts
The bulls need to hold 1.0350 and get on the back side of the micro bearish trendline resistance on the 4-hour chart or face risks of a break below 1.0300.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
